Closing Cost Estimator
The down payment isn't the only check you write. Closing costs — lender fees, title, transfer taxes, prepaids — typically add 2–5% of the home price. Estimate yours by state and loan type.
Estimated closing costs
Fee breakdown (mid estimate)
How it works
Closing costs are the fees paid to everyone involved in transferring the property: your lender (origination, underwriting, appraisal), the title company (search and insurance), the government (transfer taxes, recording), plus prepaids — the first deposits into your escrow account for taxes and insurance, and interest from closing day to month-end.
The 2–5% rule of thumb holds nationally, but states diverge on transfer taxes: Pennsylvania (~2%) and Delaware (~4%) sit at the high end, while Texas, Alaska, and several others charge nothing. This estimator applies an approximate statewide transfer-tax rate — your county may differ, and the tax is often split with the seller by local custom.
Two ways to shrink the cash you need: seller credits (negotiate the seller to cover part of your costs) and lender credits (accept a slightly higher rate in exchange for the lender paying fees). Both cost you something — run the refinance break-even calculator logic on any rate tradeoff before you agree.
Frequently asked questions
How much are closing costs on a house?
Typically 2–5% of the purchase price. On a $400,000 home, expect roughly $8,000–$20,000 in closing costs, paid on top of your down payment.
What fees are included in closing costs?
Loan origination and lender fees, title search and title insurance, appraisal, transfer taxes, recording fees, and prepaid items like initial escrow deposits and prepaid interest.
Who pays closing costs — buyer or seller?
Both, but the buyer pays the larger share. Some costs are negotiable, and sellers sometimes contribute credits toward the buyer's closing costs as part of the deal.
Can closing costs be rolled into the mortgage?
Some can — lender credits or a slightly higher rate can offset cash due at closing, but you'll pay interest on it over time. FHA's upfront MIP is commonly financed; most other fees are cash.
Do closing costs vary by state?
Yes, mainly through transfer taxes and recording fees. States like Pennsylvania and Delaware have notably higher transfer taxes, while Texas and several others have none.
What are 'no-closing-cost' mortgages?
The lender covers closing costs in exchange for a higher interest rate. You pay less cash upfront but more over the life of the loan — worth modeling if you're short on cash.
Recommended resources
We may earn a commission if you click these links, at no extra cost to you.